Private equity-backed buyouts on the rise

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A strong end to the year helped the total value of private equity-backed buyouts in the North West grow by nine per cent in 2014.

And a return for IPOs in the first six months of the year boosted the combined value of exits in the region to a record high.

According to the latest figures from the Centre for Management Buyout Research (CMBOR), which is sponsored by EY and Equistone Partners Europe, the total value of private equity-backed deals in the North West reached £1.82bn in 2014, up from £1.67bn in 2013.

The regional market’s performance this year was buoyed by seven buyouts with a combined value of £908m in Q4 2014, representing the highest quarterly total value since Q1 2013.

However, the number of private equity deals in the North West in 2014 fell by 15 per cent to 29, down from 34 a year earlier.

The North West was the third best performing UK region by volume and value, behind London and the South East. The total UK buyout value declined to £14.98bn in 2014, compared with £15.12bn a year earlier, while the number of deals in the UK increased from 193 in 2013 to 214 in 2014.

Mark Clephan, Corporate Finance Director at EY in the North West, said: “The North West buyout market had a robust 2014 thanks to an end-of-year boost from mid-market and lower mid-market deal activity.”